To clarify certain points, we have probed deeper into the
relation between the export experience of the enterprises in the
sample and their level of technology. It appears that the firms
generally use modern technology and invest in new and more
efficient equipment in order to increase production capacity,
improve product quality and cut costs. At the oil refinery,
recent purchases of equipment comprise a continuous refining
plant (1988) and bottle blowing and filling equipment (1992). The
firm now has on order a bleaching and filtration plant. The
fertilizer firm has installed a modern nitric acid plant and an
NPK plant. Its latest piece of equipment is a high-efficiency
nitric acid absorption column acquired from Rhone Poulenc under a
licence agreement. The knitwear firm has this year installed new
equipment for knitting and dyeing. Its aim is to keep in step
with technological improvements elsewhere in order to introduce
more advanced production methods to fulfil export orders and cut
costs. The firm endeavours to maintain its position on export
markets through productivity increases with the use of modern
technology. It also achieves cost reductions through better
control of raw material, reduction of wastage and just-in-time
stock procurement. The paint manufacturer also uses up-to-date
technology. The last piece of equipment was acquired in 1992,
with the aim of increasing production capacity. The firm uses
up-to-date production methods to cut costs and remain
competitive. It has secured a foothold in export markets owing to
its reputation for quality and competitive prices.

In short, it appears that these enterprises are generally
innovative and keep up with technological improvements. Better
organization of production and the use of modern equipment for
greater efficiency, quality improvement and cost reduction are
the main aspects of their competitive strategies. These
enterprises purchase their equipment directly from machinery
suppliers who generally send their own technicians for the
installation of the equipment. Routine servicing and maintenance
are performed by the firms' own staff or are contracted out to
local workshops.

The next question concerned the extent to which the firms
acquired new skills and improved their organization as a result
of their export experience. The oil refinery acquired new skills
through regular contracts with leaders in the edible oil industry
and professional institutions. It claims to have gained
considerable experience in achieving customer satisfaction since
it introduced a market-oriented strategy two years ago' after a
23-year monopoly of the local market and a production-oriented
strategy. The fertilizer firm states that its export experience
has been very beneficial in improving its marketing skills. It
now has considerable experience and plans to start a free port
trading company. The paint manufacturer has introduced new types
of products to suit the requirements of export markets. For the
knitwear firm, production is directly related to international
market requirements and this has necessitated continuous
improvements in skills, standards and organization.

How far have the firm's past industrialization histories
helped in building skills for subsequent exporting? This question
concerned only those ISE firms that have recently begun to
export. According to the fertilizer firm, past industrialization
experience helped a good deal but 'export is a game which [the
firm] had to learn the hard way through extensive marketing
missions'. The oil firm for its part attributes its recent
performance on export markets to its new market-oriented strategy
and its emphasis on consumer satisfaction. In the case of the
paint manufacturer, local production enabled the firm to set up a
research and development laboratory staffed with good
technicians. As a result the firm can now supply 'tailor-made'
products for the export market.

Generally it appears that the recent entry of ISE enterprises
to export markets builds on experience gained over the years in
producing for the local market. To that extent the export market
may be seen as an outgrowth of the domestic market. Exporting
forms part of a rational strategy for those firms' future
expansion and development.

C3.1 General management capabilities (sharing
responsibilities, long-term direction, definition and clarity of
policies and procedures, and whether these are adhered to and
reviewed for effectiveness, measurement and analysis of
performance, information flow and its utilization in
decision-making, awareness of external factors, other linkages
impinging on the firm)

C3.2 Management of technology

C3.3 Division of labour

C3.4 Mobilization of resources and capabilities to cope with
new situations

C4. Marketing capabilities

C4.1 Ability to maintain market shares

C4.2 Collection and analysis of market information

C4.3 Product development policies

C4.4 Pricing

C4.5 Distribution

C4.6 Efficiency of the sales force and incentives

C5. Innovation capabilities

C5.1 Search for new ways and routines in respect of
investment, production, marketing and organization

C5.2 Research and development activities

C5.3 Technology sourcing and adaptations

C5.4 Market research (study of market trends, potential
markets and possibilities of introducing new products)

C5.5 Introduction of new technologies in production,
marketing and administration and other firm activities

C6. Identify and describe factors which have accounted for
success/failure in exporting; indicate how these factors have
changed over time

C7. How is the firm dealing with deficiencies in
capabilities in various areas which deemed important for the
success of the firm? In what way can government and other
institutions help?

D. Linkages and interactions with the socio-economic
environment (Identify and describe the various linkages and make
your own assessment of the relationship and changes over time)

D1. Consulting firms

D2. Licensing agreements and management agreements

D3. Joint ventures

D4. Providers of technical services

D5. Factor market conditions

D5.1 Labour market

D5.2 Capital market

D5.3 Land

D6. Product market conditions

D6.1 Aggregate demand trends

D6.2 Export demand conditions

D6.3 Structure of demand

D6.4 Links and relations with customers

D6.5 Interaction with local and foreign competition

D7. Interaction with government policies and regulations(identify and assess)